Case Study of Rural Infrastructure Development Evaluation through The Financing Scheme of Village Fund

Indonesia is the largest archipelago country with over than 260 million population. Yet, its archipelagic state makes it hard for the Indonesian government to distribute its income equally, causing severe poverty in certain regions. To overcome this problem, the role of construction industry is very crucial. Many papers say construction industry plays an important role to achieve socio-economic development goals in providing shelter, physical infrastructure, employment, and higher economic growth. Knowing the importance of construction sector, especially in physical infrastructure, President of Indonesia, Joko Widodo, focuses on accelerating infrastructure development. To equally distribute the development between rural and urban areas and shorten the level of inequality, in 2015 Indonesian government made a program in a form of fiscal transfers called Village Fund program. The objective of this paper is to measure the impact of Village Fund program in developing physical infrastructure across provinces in Indonesia. This paper used panel data with Random Effect Model to analyze the marginal effect of Village Fund in construction sector. The finished construction value is used as the dependent variable. As the independent variable, this paper uses the amount of Village Fund given and Gross Domestic Regional Product (GRDP) as the control variable in 33 provinces that participated in Village Fund program during 2015 and 2016. Setting with α = 0.01, the result shows that Village Fund program has a marginal positive effect to finished construction value. Every one percentage point change in Village Fund increases the amount of construction value finished by 0.033%. For the other variable, every 1% increase in GRDP also increase the construction value by 0.41%. We hope this paper could be useful to evaluate the implementation of Village Fund and as a base for making similar policies in the future. Keywords: Village Fund, Construction Value, Infrastructure, GRDP, Random Effect Model

The Village Fund program has enabled the widespread implementation of village development initiatives that involve local communities as the subjects of development (i.e., Community Driven Development) across various countries, including Indonesia. Despite receiving substantial village funds, West Java, one of Indonesia's provinces, exhibits slow growth in the Village Development Index (IDM). This study examines the effect and impact of Village Funds on achieving the Sustainable Development Goals (SDGs), as measured by the IDM in West Java Province. The methodology employs a panel data regression with fixed effects and a Difference-in-Difference (DiD) analysis on 5,312 villages that received Village Funds between 2018 and 2023. Findings indicate that Village Funds significantly impact the IDM, primarily through infrastructure projects within the village development sector. Furthermore, the regression analysis revealed that all sectors positively and significantly influence the IDM, particularly the village development implementation sector. Conversely, the DiD analysis suggests that the alignment of Village Fund activities with the SDGs has not significantly affected IDM growth in West Java. Thus, to accelerate village development, the government must balance the prioritization of Village Funds. This balance should move beyond solely focusing on infrastructure development to encompass activities in other fields, such as village community empowerment

The purpose of this study is to identify how the influence of village fund management on education increases in Sukomulyo Village, Mojowarno District, Jombang Regency. The study was conducted in Sukomulyo Village, Mojowarno District, Jombang Regency. The study procedure used is a type of qualitative study using descriptive procedures. The subjects of this research are four villages belonging to the village of Sukomulyo, Mojowarno sub-district. The method of collecting information used in this research is the field. Information analysis methods used in qualitative research include interview transcripts, reduction of analytical information, and interpretation of information. The research results show that if the village fund program in Sukomulyo Village is an increase in infrastructure development, the development and revision of residents can be said to have been achieved. The involvement of the village government in supporting the improvement of the quality of learning in Sukomulyo Village has been tested both in terms of access to learning facilities and learning infrastructure. The involvement of the village government in supporting the quality of education in Sukomulyo Village in terms of access to learning is realized in full. PAUD, TK/TPA and TBM which show the involvement of the village government. village government in improving the quality of learning in terms of facilities and infrastructure has been implemented.

This study aims to analyze the village fund policy, especially on the implementation process of village funds project from planning, disbursement, utilization to accountability. The research was conducted on seven villages receiving the village fund in Pineleng Sub-district, Minahasa District, North Sulawesi Province. This research was conducted for 3 (three) months from January to March 2017. This research uses primary and secondary data. Primary data comes from observations and interviews. The samples in this study were members of the village community in Pineleng Sub-district of Minahasa District in seven villages namely Sea, Sea One, Warembungan, Pineleng Dua Indah, Kali, Kali Selatan and Winangun Atas. Each village takes 10 (ten) respondents for each village so the total number of community members who become sample is 70 (seventy) respondents. The results show that the village fund program in Pineleng Sub-district is running well, but for the future it is necessary to increase the capacity and skill of the village government apparatus in order to support the implementation of this program to improve the economy and better society welfare.

This research is to discuss the exiting conditions of the management implementation of public policies in Government of Serang Regency in the Village Fund program which at this time is being actively disbursed by the Central Government through local regency government. The research in this thesis is qualitative research which means that the primary data from this study is obtained by relying on in-depth interviews with several key informants until the data becomes saturated and explores opinions through Focus Group Discussion. The key informants from this study consisted of Serang Regent, leading sector and supporting sector in Serang Regency Government, as well as operational sectors of Village Fund activities such as Village Heads and Village Facilitators. This research was conducted in Teluk Terate Village, Kramatwatu District, Serang Regency. The writing of this paper is also carried out with reference sources from various literatures which are equipped with a subjective review of the researcher on the topic presented. From the results of the study, there were some constraints in the management of the Village Fund in general, such as the existence of a three-sectoral ego that handled Village Government, the paradox of Village Fund regulation policies, too many regulations issued, the lack of professionalism of Village Assistance, and several other obstacles. This study obtained the ideal model and ideal strategy for management implementing of the Serang Regency Government in handling the Village Fund. In carrying out a description of the implementation of the Serang Regency Government policy on the Village Fund, researchers used the approach through the theory of Edward III.

This paper assesses the impact of the implementation of federal constituency projects on the development of infrastructure in Kogi State from 2012 to 2022. The main objective of the study was to determine the contributions of federal constituency projects to the development of economic and social infrastructure in each Senatorial District of Kogi State. Methodologically, a descriptive survey was adopted for the purpose of data collection, analysis and interpretation. Out of 321 questionnaire administered to selected respondents in the 3 Senatorial Districts of Kogi State, 302 were completed and returned appropriately. Data collected were analyzed using the Statistical Package for Social Sciences (SPSS) as a tool for data presentation and hypotheses test. Also, the study made use of secondary data sourced from Tracka, journal articles, empirical studies, newspaper publications among others. The findings of the study reveal that the implementation of federal constituency projects has significantly impacted on the development of economic and social infrastructure in some communities in Kogi State while others are yet to benefit. However, the level of constituency projects implementation in Kogi State from 2012-2022 is a far cry from annual budgetary allocation and specifications. This paper therefore recommends that members of each respective constituency in Kogi state must be carried along from the period of project initiation to its completion so as to hold all relevant stakeholders accountable for any lapses. Likewise, the press and Civil Society Organizations are to ensure that legislative oversights are properly carried out in order to ascertain whether project implementation is in line with approved budget.

Bakung Raya Village in Katingan Kuala Sub-district, Katingan Regency, has been receiving village funds from the central government since 2015. The village funds are used for various purposes including village government operations, infrastructure development, disaster mitigation, food security, and community empowerment. This study aims to analyze the role of the Sub-district Head in determining the policy for village fund management in Bakung Raya Village. The research utilizes a descriptive method with a qualitative approach and purposive sampling technique to select informants. Data were collected through observation, in-depth interviews, and documentation. Data analysis was conducted through data reduction, data presentation, and conclusion drawing stages. The research findings indicate that the role of the Sub-district Head is crucial in ensuring that village fund management policies are implemented transparently, accountably, and participatively. The Sub-district Head acts as a supervisor and facilitator in the village fund management process, ensuring that policies adopted comply with regulations and meet community needs. Additionally, the Sub-district Head coordinates between the village government and the community, thereby enhancing participation and transparency in the use of village funds. This research confirms that active involvement of the Sub-district Head in village fund management can strengthen the effectiveness of village development programs. The Sub-district Head not only acts as a supervisor but also as a mediator who bridges the interests of the village government and the community. Therefore, the role of the Sub-district Head significantly contributes to improving the quality of village fund management in Bakung Raya Village, ultimately supporting sustainable development and the welfare of the village community.

The Effectiveness of Village Fund Policy on Infrastructure Development in Baleendah Village, Bandung Regency. This study aims to find out how effective village fund policies are in infrastructure development. This study uses a phenomenological approach with an interpretive paradigm as the research umbrella, namely an approach that describes the conditions or object of research as it happened. The results of this study indicate that the effectiveness of village funds in infrastructure development in Baleendah Village is considered appropriate. The results obtained are the right implementation, the right target, the right policy and the right environment. With the existence of a village fund policy, the Baleendah community has received and enjoyed the benefits, namely the access of the Baleendah community in everyday life is easier, the implementation is precise, that the village government of Baleendah has carried out good cooperation with the community, the city/South Bandung regency government and the private sector. Right on target, that the development carried out is in accordance with the target in the APBDes. Environmentally appropriate, that the coordination carried out by the Baleendah Village government with the community and the South Bandung city/regency government has been good, and in the external environment the mass media policy has provided information regarding developments in Rompu Village.

Labor productivity is a crucial factor in determining the efficiency and success of construction project implementation. This study aims to measure labor productivity in the field using the Labor Utilization Rate (LUR) and compare it with the Unit Price Analysis (AHSP) SNI 2024 standards. The research was conducted on the HBEC Building construction project, focusing on the reinforcement work of the first-floor column in the meeting room area. The work sampling method with a productivity rating approach was employed to obtain actual labor productivity data on-site. The results show that the LUR value reached 82.97%, far above the minimum productivity threshold of 50%. This indicates that the labor productivity level on the project is considered high and satisfactory. Furthermore, a comparison between on-site productivity and the AHSP 2024 standards revealed that the average labor productivity on-site was 20 kg/day, while AHSP 2024 recorded 20.47 kg/day. The very small difference suggests that the actual labor productivity on-site is nearly equivalent to the national standards, reflecting efficient performance in project implementation. Overall, this study concludes that the work sampling method is effective in evaluating construction labor productivity. These findings are expected to serve as a practical reference for project managers and stakeholders in optimizing labor performance and improving project implementation efficiency in the future.

نتيجة للتطور والتقدم المستمر تصاعدت الاهمية لموضوع بحوث العمليات حيث يساعد الالمام بأساليب بحوث العمليات وتطبيقها في رسم السياسات ووضع الخطط بما يتفق والاهداف مع ضمان الاستخدام الامثل للطاقات والامكانات اذ ان التقدم الذي يشهده العالم الان في كافة المجالات ادى الى تطوير العديد من المشروعات المتنوعة ويعد عامل الوقت عاملا مهما في تنفيذ هذه المشروعات في اقل فتره زمنيه ممكنه للبدء بإنجاز مشروعات اخرى جديده وهنا ينبغي الاخذ بنظر الاعتبار الامكانيات المتاحة لتنفيذ هذه المشروعات حتى انه لابد من الوصول الى التخطيط الامثل في ظل هذه الموارد والامكانيات المحدودة لتخطيط المشروع. ولقد اصبح من الضرورات الموضوعية الاخذ بأساليب التخطيط الحديثة المرافقة للتطورات العلمية والتعقيد في الاعمال الحديثة. وتهدف الدراسة الى استخدام اساليب بحوث العمليات المتمثلة بأسلوب( المسار الحرج وبيرت) لتخطيط ومتابعة مشروع انجاز تصنيع الابواب الخشبية، بهدف تحقيق الوقت الامثل لا نهاء المشروع في ظل الموارد والامكانيات المتاحة وبأقل تكاليف ممكنة. وقد خرجت الدراسة بأن عدم استخدام اساليب بحوث العمليات في تنفيذ المشاريع داخل المعمل انعكست اثارها السلبية على تنفيذ المشروع الاول اذ بلغت الفترة الزمنية للتنفيذ( 365) يوم في حين ان المخطط كان لفترة لا تتجاوز(206 ) يوم وباعتماد اسلوبي المسار الحرج وبيرت تم تحديد الفترة الزمنية ب (206) يوم وبذلك فان هناك فارقاً واضحاً بين التنفيذ الفعلي والتخطيط العلمي اذ بلغ(159 ) يوم كما ان مقدار كلفة التنفيذ كانت(107$ ) دولار. والاعتماد على الخبرة الشخصية المتراكمة دون تحديد افضل الاساليب العلمية الصحيحة في انجاز مشاريع تصنيع انتاج الابواب الخشبية في معمل المصطفى. ومن المؤشرات التي تم التوصل اليها بالاعتماد على بيانات سابقة في تنفيذ المشروع الاول اتضح ان من اهم الاسباب في تأخير عملية تنفيذ اكثر من نشاط متداخل هو عدم اتساع المساحات المخصصة لا نجاز الاعمال. وكان من احد الاسباب الرئيسة في تعطيل انجاز المشروع السابق عن موعده المحدد هو التأخير في وصول المواد الاولية في اوقاتها المحددة مما يعطي مؤشرا واضحاً على وجود خلل تمثل في ضعف المتابعة.

This research aims to determine community empowerment-based self-management construction projects and contractual-based construction projects in Sumenep District, using the AHP (Analytical Hierachy Process) method. The AHP method is used to analyze the results of the questionnaire so that the weight value of the criteria and sub criteria can be known as the basis for selecting the implementation of construction activities. Based on the results of the analysis of alternative construction implementation contractual weight is 0.501 and community empowerment is 0.499. The implementation of contractual-based construction projects is preferred with consideration of a more organized implementation, both in time (time schedule) and regulations governing it such as sanctions and fines when there are obstacles in the field being part of the responsibility for the implementation of contractual-based construction. Contractual-based construction implementation tends to be more organized and in accordance with strict schedules and regulations, including sanctions and fines if there are obstacles in the field. In contrast, self-managed construction based on community empowerment, such as in the village fund program, often has leeway in terms of a longer implementation period and supervision carried out by the community itself, not by experts. Thus, stakeholders are expected to clarify the regulations governing which works are carried out in a self-managed manner and which works are carried out contractually in government programs.

Village funds are one part of village finances that come from APBN transfers and are used by village governments to improve the welfare of village communities in accordance with the priorities for using village funds. The policy on the use of village funds has been stated in Permendes Permendes Nomor 7 Tahun 2023 Tentang Rincian Prioritas Penggunaan Dana Desa. Village funds must be allocated for the welfare of the village community, one of which is through the realization of development. The purpose of this study is to describe the extent to which the implementation of the use of village funds in supporting development in Jatimulyo Village, Kauman District, Tulungagung Regency. The research method used is descriptive qualitative research and the research focus uses the theory of public policy implementation according to Van Meter & Van Horn (1975) which includes 6 variables. Based on the research results, the Jatimulyo Village Government and other implementers have implemented infrastructure development and human development through village funds in 2023. There are 3 out of 6 indicators that have not fulfilled the implementation theory according to Van Meter & Van Horn (1975), including: 1.) indicators of policy targets, the development carried out is the construction of GORs, farm roads, waterways, posyandu, and the Village Fund BLT program. However, these development targets have not been maximally useful in terms of quality and quantity. 2.) resource indicators, the limited village fund budget makes the implementers have to maximize these financial resources in supporting good development. 3.) indicators of the characteristics of these implementers still have insufficient competence in planning village development priorities at that time.

Project duration is one of the methods to measure the efficiency of project implementation. This study identifies the factors influencing the project duration of urban village redevelopment projects (UVRPs) in China. Based on the theory of new institutional economics and behavioral economics, this study develops three hypotheses regarding the causal relationship between institutional arrangement and project duration. Statistical analysis of data on 439 UVRPs collected from seven Chinese cities revealed that projects implemented through top-down institutional arrangements were more likely to take a long time than those implemented through bottom-up institutional arrangements. Projects implemented through top-down and government funding were more efficient than those implemented through top-down and villager funding. For bottom-up projects, there was no conclusion about whether village funding or private developer funding led to shorter project duration. Other determinants, including city, project attributes and initiation year, number of households involved, size of temporary relocation fee, and methods of selecting relocated housing, calculating temporary relocation fee and calculating relocation area influenced project duration.

<p>Dana Desa (Village Fund) Program is targetting equal economic growth based on bottom up wealth growth. Constrastly, in its practice, there are some problems due its effect on program responsibility and on socio-political relation. Based on Theory of Fiscal Decentralization, this paper presenting the practice of Dana Desa Program in Desa Bajo, Soromandi, Bima, Province of NusaTenggara Barat (West Nusa Tenggara/NTB). We found that the effect of democracy capacity weakness that causing low government capacity as main source of the problems. Instead of gaining its aims, Dana Desa is trigging political and governmental problems in Desa Bajo. Low democracy capacity as the main source of the problemms, caused by internal and external factors i.e. political culture, institutional framework as well as factor of political actors and political institutions.</p>

Measuring the physical infrastructure development as poverty reduction program in Kalimantan, Indonesia